Govt brings ‘Go Cashless’ Ordinance to pay Wages via Electronic means.

Govt brings ‘Go Cashless’ Ordinance to pay Wages via Electronic means.

The Central government, following the conclusion of a high-level meeting, that is underway passed an ordinance to amend Wages Act for payment to labour.

In another major step by the central government, with its ambitious dream of achieving a complete cashless economy, is encouraging to make salary payments in cheques. Although, reports suggest that cheque payments are not compulsory. This move by the government does not phase out cash payments.

Reports suggest that quite often employers do not declare the apt number of their employees and the government’s cashless move is expected to bring transparency to the system. According to CNN TV18, the government also wanted to include private employees and the cabinet was yet to finalise modality.

The Central government also reportedly stated that the if the state government wanted they could notify and make payments by cheques or move the salary directly into accounts

It has to be noted that ‘pay Wages via Electronic means’ ordinance is currently only liable to govt employees, although the thought of extending it to the private sector might also be discussed during the meeting. The move is aimed at preventing the exploitation of labourers.

The government might also encourage to make payments in a cheque to the first graft. It has to noted that the cheque option was not compulsory to pay salary. One of the other possible reasons for the passing of the ordinance might also be to ban the under-reporting the number of employees.

Source: FE